Tag Archives: OIC

I have been audited. What do I do now?

You just received a letter or phone call from the Internal Revenue Service (IRS), and it indicates that the IRS is auditing your federal tax return.  What do you do now?  There are several steps you can take to address the situation:

  1. Remain Calm. Approximately 1-1.5% of United States taxpayers are audited each year.  With over one million IRS tax audits each year, you are not alone.  Why did the IRS audit you?  There are a variety of reasons your federal tax return may have been flagged, but one of the most common reasons is a large number of deductions.  Does this mean that you did anything wrong?  No.  In fact, everything on your return may be fine and the Internal Revenue Service simply needs more information to confirm they are valid.
  2. Plan to Respond. The IRS requires a reply to federal tax return audits within two months.  Without you providing a response, the IRS will likely rule against you.  Remember, the IRS generally considers that their position is correct unless you provide evidence proving otherwise.  Such a ruling could mean that you have to pay more taxes.  You may have to pay fines as well if you do not make the additional payment on time.
  3. Read the Notice. The notification you receive should clearly state why the IRS is auditing your federal tax return.  It should also indicate how you should response (whether through the mail or in person at a local IRS office) and the date by which the response must be received by the IRS.  Finally, if the IRS believes that you owe additional money on your federal tax return, the notification will state the amount.
  4. Obtain Professional Help. The tax laws can be complicated to understand.  Therefore, without appropriate training or tax advice, it may be difficult to understand if the IRS’s position is correct and what rights you have as a taxpayer.  This is where a tax lawyer or other professional who prepared your return can help.  They have the knowledge to guide you through the situation.
  5. Write a Response. Whether you need to meet with an IRS representative in person or can provide our response in the mail, you should write up your response.  This allows you to organize your thoughts and respond in professional manner.  This written response should speak only to the concern noted in the IRS audit notification, as other facts may cloud the issue.  You should also keep original copies of your tax return documents and support, supplying only copies along with your written response.
  6. Await the IRS’s Reply. Once you have responded to the IRS, they should contact you again, whether it is to indicate that your response has addressed the matter or that the matter is still in question.  If the IRS does need additional information, perform the steps noted above in response to the IRS’s request.

If you find after you have consulted a tax advisor or tax lawyer that you do owe additional money to the IRS, you should investigate an Offer in Compromise (OIC).  An OIC is a situation where the IRS accepts a lesser amount as payment for a tax liability in lieu of the full payment.  The IRS may accept an OIC in three situations:

  1. Doubt to timely collection. The IRS does not believe you can pay the full amount owed within the legal period allowed for the IRS to collect the additional tax due.
  2. Doubt the taxpayer actually owes the money. There is question to the amount of money owed because of a mistake by the IRS auditor or because of new evidence provided by you or your tax advisor or tax lawyer.
  3. There is an unusual financial situation. The taxpayer is able to prove that payment of the tax would create an unfair economic burden.

Additional information about Offer in Compromise is available on the Internal Revenue Service’s website at http://www.irs.gov/businesses/small/article/0,,id=104593,00.html.

Do I need to hire a tax attorney?

If you have additional questions or need help from a tax attorney, complete the short evaluation form found at http://www.offerincompromiselawyer.com/Tax-Relief.php and a tax lawyer will review your situation free of charge.  The review is 100% confidential and there is no obligation.  Tax attorneys understand federal tax laws and can answer your IRS tax questions.  You have everything to gain by obtaining professional advice!  So get help in addressing your IRS audit today or establishing an Offer in Compromise!

Offer in Compromise For New Hampshire Taxpayers

Offer in Compromise is a tax settlement option which taxpayers can use to settle outstanding tax debt. Offer in Compromise may allow a New Hampshire taxpayer to make an offer to the IRS and if the IRS accepts the offer, the taxpayer’s outstanding tax debt will be settled. Many times the offer can be for much less than the full amount of IRS tax debt owed.

New Hampshire taxpayers will have to meet several requirements to qualify for an OIC and the IRS will only accept an Offer in Compromise if they are certain the taxpayer can not pay the full IRS debt with one lump sum payment or with an installment agreement. Most Offer in Compromise agreements are not accepted and the IRS will have sole authority to decide if they will accept all appeals or negotiate offers. If the OIC is denied, New Hampshire taxpayers will not have legal recourse against the IRS.

If an Offer in Compromise is accepted by the IRS penalties and interest will stop accruing, and the IRS will cease all collection efforts against the taxpayer. Offer in Compromise is one of several IRS tax settlement options and it can be time consuming and difficult to implement. Detailed information will be requested by the IRS and if the OIC is denied, the IRS can use this information to continue their collection actions. New Hampshire taxpayers who have outstanding tax debt or who have become the target of IRS collection effort should contact a tax professional for help.

Three types of Offer in Compromises:

New Hampshire taxpayers must meet one of the following conditions to qualify for Offer in Compromise:

1. Doubt as to Liability – The Internal Revenue Service will accept an Offer in Compromise if they believe there may have been an error in the calculation of the federal tax. Errors do not occur often, but they may occasionally happen as a result of an error in calculation, a misapplication of tax law or if the taxpayer provides additional tax information to the IRS.

2. Doubt as to Collectibility –  The Internal Revenue Service may be willing to accept an OIC if they doubt they will be able to collect the IRS tax debt either now or before the statutory period ends. If the cost to collect is considered too high, the IRS also may grant an Offer in Compromise.

3. Effective Tax Administration- The Internal Revenue Service may accept an Offer in Compromise if they believe New Hampshire taxpayers will experience a hardship which is “inequitable or unfair” if they pay their tax debt. This condition is generally applied to the elderly and handicapped.

Rejection of Offer in Compromise in New Hampshire

The IRS accepts approximately 20% of the initial OIC offers. All OIC offers which are denied can be appealed by New Hampshire taxpayers by writing a letter within 30 days from the date of the Offer in Compromise denial letter. The IRS will have sole authority to accept all Offer in Compromise appeals.

OIC denial letters must outline the reasons for the Offer in Compromise denial and if the IRS believes the offer was too low, the letter should also document an amount which the IRS considers reasonable. If the IRS refuses to provide the taxpayer with Offer in Compromise information the New Hampshire taxpayer can request the information under the Freedom of Information Act.

Appealing an Offer in Compromise in New Hampshire

The first step in the Offer in Compromise appeal process is to contact the IRS administrator who made the first denial decision. Negotiations with the administrator are not always successful, but sometimes they may be willing to work with the taxpayer to find a settlement amount which is agreeable to the IRS and the taxpayer. If the IRS administrator is not willing to negotiate then a formal appeal can be made to the Internal Revenue Service by sending an appeal letter within thirty-days from the date of the OIC denial letter.

The following information should be included in the OIC appeal letter:

  • The social security number, name, address and telephone number of the New Hampshire taxpayer.
  • Documentation from the New Hampshire taxpayer outlining the reasons for the Offer in Compromise appeal.
  • A list of the items which the New Hampshire taxpayer would like to negotiate.
  • A list of the tax periods or years in question.
  • Documented evidence which support the New Hampshire taxpayer’s position.
  • The OIC appeal letter must be signed by the New Hampshire taxpayer under penalty of perjury.

Offer in Compromise appeals can be negotiated and completed by the New Hampshire taxpayer without legal counsel, but if taxpayers want legal help they will need to hire a tax attorney, certified public accountant or an enrolled tax agent.

Completing an Offer in Compromise

New Hampshire taxpayers must complete all of the following tasks for an Offer in Compromise:

  • All Offer in Compromise forms must be sent by the New Hampshire taxpayer to the IRS.
  • All financial information must be sent to the IRS by the New Hampshire taxpayer including: employment records and vehicle information.
  • All federal tax returns must be completed and filed on or before the federal tax deadline for the next 5 years.
  • New Hampshire self-employed workers must file quarterly tax statements and make estimated federal tax payments each quarter.
  • All IRS taxes must be paid by New Hampshire taxpayers for the next 5 years.
  • All Offer in Compromise payments must be made to the IRS by New Hampshire taxpayers according to the OIC agreement.
  • All federal tax refunds will be applied to the New Hampshire taxpayer’s debt for the calendar year that the OIC is accepted.

The IRS has the legal authority to cancel all OIC agreements if the New Hampshire taxpayer does not complete all of the OIC requirements. If the Offer in Compromise is cancelled the full amount of the IRS tax debt can be charged back to the New Hampshire taxpayer.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. New Hampshire taxpayers must complete Form 656 and send it to the Internal Revenue Service. This form will document the taxpayer’s ability to pay their IRS tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. New Hampshire taxpayers must send Form 443-A to the IRS to provide additional information to the IRS about their ability to repay their federal debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. This form will only need to be completed and sent to the IRS by New Hampshire taxpayers if their business debt is included in the Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Form 656-A only needs to be completed by New Hampshire taxpayers if they are requesting an Offer in Compromise fee waiver.

Qualifying For An Offer In Compromise In Kentucky

Kentucky taxpayers who owe IRS back taxes may have the opportunity to settle their tax debt for a fraction of the total amount owed with an IRS tax settlement option. The most common plan available is Offer in Compromise or OIC. OIC allows a Kentucky taxpayer to make an “offer” to the Internal Revenue Service (IRS) outlining an amount of money they can pay. The IRS can either accept or reject the OIC offer. If the IRS accepts the offer it is considered a “comprise” and after meeting the terms of the Offer in Compromise, the Kentucky taxpayer’s debt is settled.

The Internal Revenue Service will accept an Offer in Compromise to help position the Kentucky taxpayer to fulfill their future tax liability and hopefully avoid an extended installment agreement.  The IRS not only has the authority to collect federal tax debt but also sole discretion to accept an OIC offer. The IRS accepts approximately 25% of OIC offers at the initial application level. More are accepted after negotiations and appeals. If the IRS rejects a Kentucky taxpayer’s offer, the taxpayer will not have legal recourse against the IRS and the IRS can use the detailed financial information they have collected to continue aggressive collections. Penalties and interest will also continue to accrue while the OIC offer is under consideration.

Kentucky residents who need information about Offer in Compromise can contact a tax professional. Offer in Compromise can be complicated, expensive and time consuming. Offer in Compromise is one of several tax settlement options available for taxpayers and may not be the best option for all Kentucky residents.

Qualifying for Offer in Compromise in Kentucky

Kentucky taxpayers who are considering Offer in Compromise must meet one of the following requirements:

Doubt as to Liability –  Kentucky taxpayers who question the amount of tax debt they have been assessed may qualify for an Offer in Compromise. This condition is not frequently met.

Doubt as to Collectibility – The Internal Revenue Service may agree to an Offer in Compromise if there is some question about their ability to collect the debt or if the cost to collect the federal tax debt is too high.

Effective Tax Administration–  Certain Kentucky residents may be granted an Offer in Compromise if paying their federal tax debt could cause an “economic hardship which would be inequitable or unfair”. This condition is most frequently accepted for the elderly and handicapped.

Rejection of Offer in Compromise in Kentucky

The Internal Revenue Service rejects approximately 80% of the Offer and Compromise offers it receives. Additional OIC offers are accepted after formal appeals and negotiations. The Internal Revenue Service must send written information about all OIC denials and if they consider the offer too low, the IRS should be willing to provide information about the amount they would accept. Kentucky residents who are appealing a denial must send a written letter to the IRS with in 30 days from the date of the denial letter. New Offer in Compromise forms will not need to be submitted unless the deadline has passed or the taxpayer’s financial information has substantially changed.

Appealing an Offer in Compromise in Kentucky

Kentucky residents may appeal an Offer in Compromise. Informal negotiations may be made by contacting the IRS administrator who made the first denial. The Internal Revenue Service may be willing to work with the Kentucky taxpayer to find an OIC amount which is acceptable to both parties. A more formal appeal can be made by writing a letter to the Internal Revenue Service within thirty days from the date of the Offer in Compromise denial letter.

Completing an Offer in Compromise

Kentucky taxpayers must complete the following tasks for an OIC:

  • Taxpayers must submit Offer in Compromise forms and documents to the Internal Revenue Service. Documents may include: Kentucky taxpayer’s pay stubs, bank records, and vehicle information.
  • The Internal Revenue Service federal tax returns must be filed on or before the federal tax deadline for the next five years.
  • All self-employed Kentucky workers must submit estimated federal tax payments and file all federal tax returns each quarter.
  • Kentucky taxpayers must pay federal tax payments (excluding the amount outlined in the OIC offer) for the next five years.
  • Kentucky taxpayers must agree to pay the amount outlined in the OIC agreement.
  • Kentucky taxpayers must agree to let the IRS keep all federal tax refunds and apply them to the tax debt prior to accepting the Offer in Compromise.
  • The Internal Revenue Service will use all tax refunds to pay back taxes for the calendar year that the OIC is approved.

The Internal Revenue Service can legally revoke an Offer in Compromise and charge Kentucky taxpayers all of the taxes due for failing to meet the agreed upon terms of the Offer in Compromise.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. IRS Form 656 will provide financial information to the IRS about the Kentucky taxpayer’s financial status and their ability to repay their federal tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A provides additional financial information about the Kentucky taxpayer to the Internal Revenue Service about the taxpayer’s ability to pay their tax federal debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B provides information to the Internal Revenue service about the Kentucky taxpayer’s business. Form 433-B is only needed if the business tax debt is included in the Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. This form will only need to be submitted if the taxpayer is requesting a waiver for the Offer in Compromise.

Submitting an Offer in Compromise in Hawaii

Offer in Compromise or OIC is an agreement between the Internal Revenue Service (IRS) and the Hawaiian taxpayer which may allow the taxpayer to settle their IRS tax debt for less than the total amount owed.  The Internal Revenue Service will only accept an OIC offer if the taxpayer meets certain conditions and the tax amount can not be paid in full or through an installment agreement.

The IRS does not accept all OIC offers, in fact, they currently deny up to 80%.  The IRS may be willing to accept an offer if they believe it will put the taxpayer in a position to meet all future tax debt obligations.  Failure to pay tax debt can result in wage garnishment, property repossession or bank account levies.

Hawaiian taxpayers who are considering an Offer in Compromise may want to contact a tax professional. Offer in Compromise can be expensive, time consuming and difficult to implement. It is only one option for Hawaiian taxpayers and may not be the best option.

Three types of Offer in Compromises:

1. Doubt as to Collectibility – The IRS doubts the Hawaiian taxpayer will be able to pay the full amount of their tax debt within the statutory time for tax collection.

2. Doubt as to Liability- There must be a legitimate doubt that the amount of IRS tax debt assessed against the Hawaiian taxpayer is correct. This can occur if the IRS examiner made a mistake in the interpretation of the law, the IRS examiner did not consider all of the taxpayer’s financial evidence, or the Hawaiian taxpayer can produce new evidence for the IRS.

3. Effective Tax Administration- The amount of tax debt assessed is correct and the IRS may be able to collect the tax debt, but there is some extenuating circumstance which makes the IRS think payment of the tax debt would cause an economic hardship which is unfair or inequitable.

Rejection of Offer in Compromise in Hawaii

The Internal Revenue Service has been given sole authority to collect taxes and to determine if they will accept Offer in Compromise offers. If the IRS denies a Hawaiian taxpayer’s OIC offer, the taxpayer may be able to appeal the decision, but they will not have any other legal recourse against the IRS.

If the IRS denies an OIC offer they will send written notification to the taxpayer identifying the reason for the denial. If the IRS determines the OIC offer is too low, they may be willing to provide a counter offer or negotiate with the taxpayer to find an offer which is agreeable to both the government and the Hawaiian taxpayer. If the IRS does not provide Offer in Compromise information to the taxpayer this information can be requested under the Freedom of Information Act.

Appealing an Offer in Compromise in Hawaii

Informal negotiations can often be done by contacting the IRS administrator who made the first OIC denial decision. If a taxpayer wants to make a more formal appeal they will need to send written notice to the IRS within thirty-days from the date of the OIC denial letter.

The formal written request for an OIC appeal must have the following information:

  • Social Security number, telephone number, name and address
  • A statement that the taxpayer is appealing the IRS ruling to the Appeal’s office.
  • A copy of the letter sent to the taxpayer and the taxpayer’s proposed changes or items that the taxpayer wants changed and what the taxpayer does not agree with and why.
  • Document the tax periods or years in question.
  • Identify any tax laws or other authorities which may support the position.
  • Identify any facts that may support the position with which the taxpayer disagrees.
  • The taxpayer must sign the written protest under penalty of perjury.

Hawaiian taxpayers may represent themselves for all OIC appeals, but taxpayers may want to talk to a tax professional such as a tax attorney, certified public accountant or enrolled agent who can answer OIC questions.

Completing an Offer in Compromise

Hawaiian taxpayers must complete the following tasks:

  • Hawaiian taxpayers must complete all OIC forms and submit them to the Internal Revenue Service.
  • Hawaiian taxpayers must submit all requested financial data to the Internal Revenue Service. Financial information includes: taxpayer’s pay stubs, banking and car information.
  • Hawaiian taxpayers must complete and send all federal tax returns to the Internal Revenue Service on or before the federal tax deadline for the next five years.
  • All self-employed Hawaiian taxpayers must pay their estimated IRS taxes and submit their federal tax returns every quarter.
  • All tax payments (except the amount outlined in the OIC agreement) must be paid by Hawaiian taxpayers for the next five years.
  • Hawaiian taxpayers must pay the amount outlined in the Offer in Compromise agreement.
  • The IRS will apply any federal tax refund to the Hawaiian taxpayer’s tax debt for the calendar year that the OIC is approved.

The IRS has the authority to terminate an Offer in Compromise if all the terms and conditions of the agreement are not met. If the Offer in Compromise is terminated, the IRS can charge the taxpayer the original amount of tax debt.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. Hawaiian taxpayers must submit IRS Form 656 to the Internal Revenue Service to provide detailed financial information about the taxpayer and their ability to pay their tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A provides additional information about the Hawaiian taxpayer and their ability to pay their federal tax debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Hawaiian taxpayers will need to submit IRS Form 433-B to the Internal Revenue Service if a taxpayer’s business tax debt is included in the Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Hawaiian taxpayers who request an Offer in Compromise fee waiver must submit Form 565-A.

Offer in Compromise For The Oregon Taxpayer

Oregon taxpayers who owe federal tax debt may be able to settle their debt at a fraction of the full liability owed. The Internal Revenue Service has created a variety of tax settlement programs for taxpayers to repay their tax debt and help them meet all of their future federal tax obligations. One of the most popular tax settlement options is Offer in Compromise. Offer in Compromise or OIC allows the Oregon taxpayer to make an “offer” or sum of money they would be able to pay to settle back tax debt. The offer is considered a “compromise” and if it is accepted by the IRS and all of the OIC requirements are fulfilled, the debt will be settled.

The United States government has given the Internal Revenue Service the authority to collect federal tax debt which is used to fund the activities of the federal government. Under this authority, the IRS has the sole discretion to accept or deny offers made under the Offer in Compromise program. The Oregon taxpayer will not have any legal recourse against the IRS if they do not accept their OIC offer.

Interest and penalties will continue to accrue while the Internal Revenue Service is considering a taxpayer’s Offer in Compromise offer. If the IRS does not accept the offer, the Internal Revenue Service can begin their aggressive collection efforts with the detailed information which the taxpayer has provided to them. Approximately 25% of the OIC offers are accepted by the IRS at the initial application level. More may be accepted on appeal. Offer in Compromise can be expensive and time consuming.

Oregon taxpayers who have federal back tax debt and who are considering Offer in Compromise should contact a tax professional. Offer in Compromise is only one of several tax settlement options available and will not be the best option for all Oregon taxpayers.

Qualifying for Offer in Compromise in Oregon

Oregon taxpayers who are considering Offer in Compromise must meet one of the following conditions:

  1. Doubt as to Liability– If an Oregon taxpayer has doubts the amount of federal tax debt which has been assessed against them and the Internal Revenue Service agrees the amount is questionable, the IRS may be willing to accept an Offer in Compromise.
  2. Doubt as to Collectibility– The Internal Revenue Service may conclude that certain tax debt will not be collectible or the cost to collect will be too high. If the Internal Revenue Service makes this determination an Offer in Compromise may be accepted. Under this condition, the amount of tax debt is not in question, only the ability of the Internal Revenue Service to collect the federal tax debt.
  3. Effective Tax Administration– Certain Oregon taxpayers will not be able to pay their federal tax debt with out suffering “an economic hardship which is inequitable and unfair”. If the IRS makes this determination, an Offer in Compromise may be granted. This option is used most often for the handicapped and the disabled.

Rejection of Offer in Compromise in Oregon

Unfortunately, the approval rate for Offer in Compromise is approximately 25%. A higher percentage may be accepted on appeal. If the IRS denies the taxpayer’s Offer in Compromise they are required to send written notification for the reason for the denial and the amount they would consider acceptable. The IRS most commonly denies OIC offer because they believe the offer is too low. If the Internal Revenue Service has denied an Oregon taxpayer the right to review the Offer in Compromise information, the taxpayer has the legal authority to request the information under the Freedom of Information Act.

Offer in Compromise appeals must be made with in thirty days of the date of the denial. Tax professionals can assist with all first time Offer in Compromise offers as well as the OIC appeal’s process. New OIC forms will only need to be filed if the deadline has expired or an Oregon taxpayer’s financial situation has dramatically changed.

Appealing an Offer in Compromise in Oregon

Offer in Compromise appeals can be made informally with the IRS administrator who made the first denial decision. This administrator may or may not be willing to negotiate. If negotiation attempts fail with the administrator, a more formal approach is available by sending a letter to the IRS with in 30 days of the OIC denial. The Internal Revenue Service is often willing to negotiate a settlement to help the taxpayer settle the debt and encourage the taxpayer to pay future tax liability.

Oregon taxpayers must meet the following requirements to qualify for Offer in Compromise:

  • Oregon taxpayers will need to provide to the Internal Revenue service all requested financial documentation
  • Oregon taxpayers will need to complete all the OIC forms and submit them to the IRS
  • All federal tax returns must be filed
  • Oregon resident’s who are self-employed must make all of their estimated tax payments each quarter
  • All taxes must be paid except for back tax payments outlined in the OIC offer

To qualify for an Offer in Compromise an Oregon taxpayer must submit the following forms:

  1. IRS Form 656- Offer in Compromise. IRS Form 656 provides detailed financial information to the Internal Revenue Service and documents the ability of the taxpayer to repay their debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. The form provides additional financial information to the Internal Revenue Service.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Internal Revenue Service uses Form 433-B to provide information to the Internal Revenue Service about a taxpayer’s business. Tax Form 433-B is only required if the taxpayer is including their business tax debt in the Offer in Compromise offer.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. If an Oregon taxpayer is requesting the OIC fee be waived, they must complete IRS Form 656-A.

Oregon Tax Professionals

The Internal Revenue Service provides a variety of tax settlement options. Tax professionals have the experience necessary to review a taxpayer’s financial data and determine which tax settlement program may be best. Tax professionals can also help with submitting an Offer in Compromise and with all negotiations in the OIC appeal’s process.

Submitting An Offer in Compromise To The IRS In Virginia

The IRS has a variety of IRS tax settlement options which are available to Virginia taxpayers and Offer in Compromise or OIC is one of the most popular. Virginia taxpayers can make the IRS an offer, which the IRS can choose to accept or deny. If the offer is accepted, all tax debt outlined in the OIC will be considered settled. Offer in Compromise is an IRS tax settlement option which may allow the Virginia taxpayer to settle their IRS tax debt for a fraction of the full amount owed.

Up to 20% of Offer in Compromise offers are denied at the initial application level. The IRS will only accept an Offer in Compromise if they believe the Virginia taxpayer will not be able to repay their tax debt with an installment agreement or with a lump sum payment. If the OIC is denied, the Virginia taxpayer may be able to negotiate or file an OIC appeal.

Virginia taxpayers who do not pay their federal tax debt may face IRS collection actions such as wage garnishments, business or personal property repossession or bank account levies. Virginia taxpayers who are interested in stopping the IRS or who want to settle their IRS tax debt should contact a tax professional for help. Offer in Compromise can be costly, time consuming and difficult to implement. It can be a good method to repay tax debt at a fraction of the full amount owed, but it may not be the best option for all Virginia taxpayers.

Three types of Offer in Compromises:

Not all taxpayers who want an Offer in Compromise will qualify for one. Virginia taxpayers must meet one of the following OIC conditions to qualify for an OIC:

1. Doubt as to Liability – The IRS may accept an OIC if there is doubt as to the accuracy of IRS tax debt which has been assessed against the taxpayer. Errors are rare, but could occur if the IRS miscalculates tax debt, misinterprets tax law or if the taxpayer provides tax documentation which has not previously been reviewed.

2. Doubt as to Collectibility –  If the IRS does not believe they will be able to collect tax debt before the statutory period for debt collection ends, they may accept an Offer in Compromise. The IRS may also accept an OIC if they determine the cost to collect the tax is too high.

3. Effective Tax Administration- If a Virginia taxpayer may suffer a hardship which is unfair or inequitable they may qualify for an Offer in Compromise. The elderly and the handicapped most frequently use this condition.

Rejection of Offer in Compromise in Virginia

The IRS has been tasked by the federal government to collect federal taxes. The IRS also has the authority to determine how much the federal government is willing to accept to settle tax debt. The IRS has sole discretion to accept or deny an Offer in Compromise offer and if the offer is denied, the taxpayer can appeal the decision. If the OIC appeals are exhausted, the Virginia taxpayer will not be able to sue the IRS.

If the Offer in Compromise is denied, the Virginia taxpayer will receive written notice from the IRS which will document the reason the OIC was not accepted. Most Offer in Compromise offers will be denied because the IRS believes the offer is too low. The IRS may be willing to provide the Virginia taxpayer with a counter offer or negotiate to find an agreeable offer. If the IRS refuses to send Offer in Compromise information to the Virginia taxpayer, this information can be requested under the Freedom of Information Act.

Appealing an Offer in Compromise in Virginia

The first step in the OIC appeal’s process is to contact the IRS administrator who reviewed the Offer in Compromise. The IRS may be willing to negotiate to find a settlement amount which will be agreeable to both the government and the Virginia taxpayer. The IRS may be willing to negotiate if they believe the compromise payment will help the Virginia taxpayer meet their future tax obligations. If the IRS refuses to negotiate, the Virginia taxpayer can file a formal appeal by writing a letter to the IRS. The taxpayer has thirty days from the date of the Offer in Compromise letter to file their appeal.

The Virginia taxpayer should include the following information on their OIC letter:

  • Virginia taxpayer’s full name, address, social security number and telephone number.
  • A copy of the statement from the Virginia taxpayer documenting the reasons they are appealing the OIC denial.
  • All proposed changes the Virginia taxpayer wants changed.
  • Information about the tax periods or years in question.
  • An outline of the federal tax laws which support the Virginia taxpayer’s position.
  • The OIC appeal letter must be signed by the Virginia taxpayer under penalty of perjury.

Tax professionals such as certified public accountants, enrolled agents or tax attorneys can be hired to provide legal assistance for Offer in Compromise negotiations or appeals.

Completing an Offer in Compromise

The following tasks should be completed by Virginia taxpayers:

  • Virginia taxpayers must send Offer in Compromise forms to the IRS by the taxpayer.
  • Virginia taxpayers must send the IRS information they request. Information may include employment and vehicle information.
  • Virginia taxpayers must file federal tax returns and submit them to the IRS before the federal tax deadline for the next 5 years.
  • All self-employed Virginia taxpayers must file and mail their tax returns and estimated tax payments to the IRS each quarter.
  • All federal taxes must be paid by Virginia taxpayers for the next five years.
  • All OIC requirements must be met.
  • Federal tax refunds will be applied to the Virginia taxpayer’s tax debt for the calendar year that the OIC is accepted.

The IRS has the authority to cancel the Offer in Compromise agreement and reinstate all IRS tax debt if Virginia taxpayers fail to meet all of the OIC requirements.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. Virginia taxpayers must send Form 656 to the IRS to provide them with information about the taxpayer’s ability to pay their IRS tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Virginia taxpayers must send Form 443-A to the IRS to provide additional information about the taxpayer’s ability to repay their IRS taxes.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Virginia taxpayers must send Form 433-B to the IRS only if the Virginia taxpayer is including their business debt in their Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Virginia taxpayers must send Form 565-A to the IRS only if they are requesting an Offer in Compromise fee waiver.

Rhode Island Offer in Compromise

Offer in Compromise or OIC is one of the most popular IRS tax settlement options available to taxpayers. Offer in Compromise allows the Rhode Island taxpayer to make an offer to the IRS to settle their IRS tax debt. Frequently the offer is for far less than the full amount of tax debt owed. If the IRS accepts the offer, it is considered a “compromise” and all of the IRS tax debt outlined in the offer will be considered settled.

The IRS denies approximately 80% of first time Offer in Compromise offers, but more may be accepted after a series of negotiations or after a formal appeal. The IRS only accepts OIC offers if the taxpayer meets certain conditions and the IRS does not think they can repay their IRS debt with an installment agreement or with a lump sum payment.

The IRS has been given authority by the federal government to collect taxes which fund the United States federal government. Failure to pay IRS tax debt can result in bank account levies, wage garnishments and property repossession. Rhode Island taxpayers who are the target of the IRS collection actions can contact a tax professional who can provide information about IRS tax settlement options which are currently available to them.

Three types of Offer in Compromises:

There may be many Rhode Island taxpayers who desire an OIC agreement who will not qualify for one. To accept the taxpayer’s OIC offer, the IRS must determine that the taxpayer’s debt meets one of the following conditions:

1. Doubt as to Liability – An OIC offer may be accepted if there is some doubt as to the accuracy of the tax debt which has been assessed. Errors can occur through miscalculations, tax law misinterpretation, or failure to consider all of the taxpayer’s financial information. This condition is not frequently met.

2. Doubt as to Collectibility –  Under this condition the amount of tax debt is not in question, only the ability of the IRS to collect the tax debt. An OIC may also be accepted if the IRS has determined collection of the tax is too high.

3. Effective Tax Administration- If the IRS determines the Rhode Island taxpayer may suffer a hardship which is inequitable or unfair if they pay their outstanding tax debt, the IRS may accept an OIC offer. This condition is used mainly for the elderly or the handicapped.

Rejection of Offer in Compromise in Rhode Island

The IRS not only has authority to collect federal tax debt, but they may also decide how much they are willing to accept to settle outstanding IRS tax debt. The IRS has the ability to accept or deny all OIC offers and the Rhode Island taxpayer will not have any legal authority to compel the IRS to accept an offer through lawsuits or any other legal means.

If the Internal Revenue Service denies an Offer in Compromise, they are required to send a written notice to the Rhode Island taxpayer outlining the reasons for the OIC denial. Most OIC offers are denied because the IRS has determined the offer is too low. If this is the reason, the IRS should be able to provide a counter offer to the taxpayer which the government thinks is reasonable. All information which is not provided by the IRS to the taxpayer may be requested under the Freedom of Information Act.

Appealing an Offer in Compromise in Rhode Island

The first step in the negotiation process if the OIC is denied is to contact the IRS and try to speak with the IRS agent who reviewed the first OIC offer. If the IRS administrator is not willing to negotiate, the taxpayer has 30 days from the date of the OIC denial letter to file a formal OIC appeal.

The Offer in Compromise letter should contain the following information:

  • The Rhode Island taxpayer’s name, address, social security number and telephone number.
  • The reason the Rhode Island taxpayer is appealing the Offer in Compromise denial.
  • All changes the Rhode Island taxpayer would like made.
  • Documentation outlining the tax periods or years in question.
  • Federal tax law information which may support the Rhode Island taxpayer’s position.
  • The Rhode Island taxpayer must sign the Offer in Compromise letter under penalty of perjury.

All Offer in Compromise appeals and negotiations can be done with out the assistance of a tax professional, but many Rhode Island taxpayers will need help. Rhode Island taxpayers who seek tax assistance should contact a tax professional who is either a tax attorney, a certified public accountant or an enrolled agent.

Completing an Offer in Compromise

Rhode Island taxpayers will need to complete the following tasks:

  • Rhode Island taxpayers must complete their Offer in Compromise forms and send them to the IRS.
  • Rhode Island taxpayers must send their IRS tax information to the IRS.
  • Rhode Island taxpayers must complete the federal tax returns and send them to the Internal Revenue Service before the tax deadline for the next five years.
  • All self-employed Rhode Island taxpayers must mail their federal tax returns and pay their estimated IRS taxes each quarter.
  • All IRS taxes must be paid by Rhode Island taxpayers for the next 5 years.
  • All OIC requirements must be completed by the Rhode Island taxpayer.
  • Federal tax refunds from the IRS will be paid toward the Rhode Island taxpayer’s tax debt for the calendar year that the Offer in Compromise is accepted.

The Offer in Compromise can be cancelled if the Rhode Island taxpayer fails to complete all of the required tasks. The IRS can also reinstate the full amount of the taxpayer’s tax debt.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. Rhode Island taxpayers must send form 656 to the IRS to provide information about their ability to pay their IRS tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Rhode Island taxpayers must send form 443-A to the IRS to provide additional information about their ability to repay their IRS taxes.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Rhode Island taxpayers must send form 433-B to the IRS if they are including their business debt in their Offer in Compromise.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Rhode Island taxpayers must only send form 565-A to the IRS if they are requesting an Offer in Compromise fee waiver.
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Maryland Offer in Compromise

The Internal Revenue Service (IRS) offers a variety of tax settlement options for Maryland taxpayers who would like to settle their IRS tax debt. Offer in Compromise is one these options and may allow Maryland taxpayers to settle their debt for a fraction of the total amount owed.

Offer in Compromise or OIC allows Maryland taxpayers to make an “offer” to the IRS and if the IRS decides to take the offer, it will be considered a compromise settlement for outstanding tax debt. One of the main reasons the IRS may be willing to accept an OIC is it may eliminate the need for the IRS to accept an extended settlement agreement.

The IRS currently accepts approximate 25% of all OIC offers but will only do so if they believe the taxpayer would suffer an unreasonable hardship if the tax was paid, the amount of tax debt may not be accurate or the IRS may not be able to collect the tax debt.

The IRS has been given the authority to collect taxes by the federal government and if Maryland taxpayers fail to pay their tax debt the IRS is authorized to use a variety of aggressive collection methods to collect the debt including: wage garnishments, property repossessions or bank levies.

Maryland taxpayers who have excessive tax debt and are considering Offer in Compromise may want to contact a tax professional for more information. OIC can be time consuming and expensive. Offer in Compromise is only one of several available tax settlement options and it may not be the best one for all Maryland taxpayers.

Qualifying for Offer in Compromise in Maryland

Maryland taxpayers who want an Offer in Compromise must meet one of the following requirements:

Doubt as to Liability – Maryland taxpayers may qualify for an Offer in Compromise if there is some doubt as to the accuracy of the amount of tax debt which has been assessed. This requirement is seldom met.

Doubt as to Collectibility –  Maryland taxpayers may qualify for an Offer in Compromise if the IRS determines it is unlikely the tax debt will every be collected either now or in the future. The IRS may also decide to grant an OIC if they determine trying to collect the tax debt is too expensive.

Effective Tax Administration- Maryland taxpayers who may suffer “an inequitable or unfair hardship” by paying outstanding IRS tax debt may qualify for an Offer in Compromise. This option is most frequently used by the elderly and the disabled.

Rejection of Offer in Compromise in Maryland

The Internal Revenue Service will deny most Offer in Compromise offers. The IRS has the authority to accept an offer and if they choose to deny the OIC, Maryland taxpayers will not have the legal authority to sue the IRS.

All denial letters must include a reason for the denial and if the offer was considered too low, the IRS may be willing to make a counter offer to help the government and the Maryland taxpayer find to an OIC offer which is agreeable to both parties. If the IRS refuses to provide Offer in Compromise information to the taxpayer, it can be requested under the Freedom of Information Act.

Appealing an Offer in Compromise in Maryland

The first step in OIC negotiations is to contact the IRS administrator who made the first Offer in Compromise denial decision. More formal OIC appeals can be made by sending an appeal letter to the Internal Revenue Service within 30 days from the date of the denial letter.

Maryland taxpayers must submit new Offer in Compromise forms if the Offer in Compromise appeal deadline has past or if their financial status has substantially changed.

Completing an Offer in Compromise

All of the following tasks must be completed by Maryland taxpayers for an Offer in Compromise:

  • Maryland taxpayers must complete all Offer in Compromise forms and send them to the IRS.
  • Maryland taxpayers must send their financial data to the Internal Revenue Service in a timely fashion. Financial information includes: Maryland taxpayer’s pay stubs, banking and vehicle information.
  • Maryland taxpayers must complete and send all federal tax returns to the IRS on or before the tax deadline for the next 5 years.
  • All self-employed Maryland taxpayers must pay their estimated federal taxes and file their tax returns every quarter.
  • All tax payments (except the amount outlined in the Offer in Compromise) must be paid by Maryland taxpayers for the next 5 years.
  • Maryland taxpayers must pay the amount outlined in the OIC.
  • All refunds will be applied to the Maryland taxpayer’s federal tax debt before the Offer in Compromise is accepted.
  • The IRS will apply any IRS tax refund to the Maryland taxpayer’s tax debt for the calendar year that the Offer in Compromise is approved.

Maryland taxpayers who do not complete the previous actions may have their Offer in Compromise terminated and the IRS may reinstate the full amount of their IRS tax.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. Maryland taxpayers must submit IRS Form 656 to the IRS to provide detailed financial information about the taxpayer’s ability to pay their tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A provides additional information to the IRS about the ability of the Maryland taxpayer to pay their federal tax debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B provides information to the Internal Revenue Service about the Maryland taxpayer’s business. This form will only need to be sent to the IRS if the business tax debt is included in the Offer in Compromise agreement.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. Maryland taxpayers who are requesting an Offer in Compromise fee waiver must submit this form.

Offer in Compromise for Alabama Taxpayers

Offer in Compromise (OIC) is an agreement between the taxpayer and the Internal Revenue Service to negotiate and pay a tax liability for less than the total amount owed. The Internal Revenue Service will agree to an Offer in Compromise if a taxpayer meets certain criteria and is not in a position to pay their federal tax debt in full. The Internal Revenue Service will only agree to an Offer in Compromise when it considers the offer to be in the best interest of the federal government and the taxpayer.

Alabama taxpayers who have federal tax debt and are unable to pay, may want to contact a tax professional  such as a tax attorney or tax accountant to discuss all available tax settlement options. Failure to pay federal tax debt can result in heavy fines and penalties, bank account levies, repossession of personal property and wage garnishments. Do not wait to call for help. Tax professionals in Alabama are familiar with the debt collection tactics of the IRS and can help provide relief.

Offer in Compromise in Alabama

Alabama taxpayers may be able to pay a small percentage of their total Internal Revenue Service debt they owe through Offer in Compromise. Offer in Compromise is offered in Alabama and in all other states. The goal of Offer in Compromise is to help Alabama taxpayers meet their current tax debt obligations so they will be able to pay their future tax liability.

Approximately 20% of the OIC applications are approved in the initial review process. Hiring a tax professional who is more familiar with the submission process and the Offer in Compromise forms may help increase your chances.

Qualifying for Offer in Compromise in Alabama

  • Doubt as to Liability – Alabama residents who doubt the amount of their outstanding tax debt may be able to prove Doubt as to Liability. Taxpayers must submit an explanation to the IRS outlining why they doubt the liability amount. Taxpayers may want to discuss other less costly and difficult ways to review their tax debt liability with a tax professional with out filing for Offer in Compromise.
  • Doubt as to Collectibility- The Internal Revenue Service must believe there is a doubt that the tax debt will ever be collected. Under this condition, there is not a doubt as to the amount of tax liability only the ability to collect.
  • Effective Tax Administration- The Alabama resident is not disputing the amount of tax debt owed, only that collection of the federal tax liability would “create an economic hardship which is inequitable and unfair”. This is mainly used for the disabled and elderly.

Additionally Alabama residents must meet the following criteria:

  • Individuals can not have an open bankruptcy claim
  • All federal tax returns must be filed
  • Offer in Compromise fee of $150 must be paid or waived
  • All appropriate forms including forms 656, 433-A or/and form 433-B and all requested financial information must be submitted
  • Taxpayer must be current with income taxes for the current year or if self-employed they must be current with the estimated taxes due

Rejection of Offer in Compromise Offers in Alabama

The Internal Revenue Service is required to send the Alabama taxpayer written notification of the OIC denial and the reason the offer was denied. The most common reason most Offer in Compromise applications are denied is the IRS believes the offer is too low. In the denial letter, the Internal Revenue Service must indicate the amount they have determined to be reasonable. Alabama taxpayers have the right to access all information regarding their OIC under the Freedom Information Act.

If the Offer in Compromise application has been denied, a tax professional can help you appeal the decision. A new form 656 will not need re-submitted unless there has been a substantial change in your financial situation or you fail to make your new offer with in 30 days from the date of the denial.

Appealing an Offer in Compromise in Alabama

The OIC administrator who denied your first Offer in Compromise application may be the best place to start for negotiations. Failure to get a more favorable decision may require you to file a more formal appeal. A letter must be sent to the IRS with in 30 days of the denial letter to make a formal appeal. Tax professionals have the necessary experience to negotiate appeals. The IRS has the ability to refuse your Offer in Compromise and they can not be sued by Alabama taxpayers for failure to accept offers. To increase the chances that your Offer in Compromise application will be accepted, you must complete the following tasks:

  • Federal tax returns must be filed
  • Accurate and detailed financial records which are request by the IRS must be submitted
  • Self-employed individuals must make estimated quarterly tax payments
  • Federal tax debt for the previous years must be paid

Alabama Tax Professionals

Alabama taxpayers who are considering Offer in Compromise may want to contact a tax professional for help. Tax professionals who are familiar with the Offer in Compromise process will include enrolled tax agents, tax attorneys and tax accountants. If you are not able to file an Offer in Compromise, there may be other tax settlement options available. It is important to take immediate action if you have a federal tax liability and not wait for the Internal Revenue Service to find you.

Benefits of Offer in Compromise

  1. Temporarily stops debt collection efforts by the IRS
  2. Allows the Alabama taxpayer to potentially pay less than their original tax debt
  3. Can stop tax liens against property after the OIC is complete
  4. May allow the Alabama taxpayer to avoid filing personal bankruptcy
  5. Alabama residents may be able to eliminate the worry and fear associated with having a large tax liability and dealing with the IRS tax collectors.

Offer in Compromise For Idaho Taxpayers

The IRS offers a variety of tax settlement options for Idaho taxpayers who are unable to pay IRS tax debt and Offer in Compromise is one of the most popular options.  Offer in Compromise or OIC allows an Idaho taxpayer to make an offer to the IRS to settle past IRS debt. If the IRS considers the offer reasonable, they will accept the offer and the past tax debt will be considered settled. The IRS has the incentive to accept Offer in Compromise offers because it will eliminate the need for a protracted installment agreement, can help them avoid declaring debt as currently not collectible and help taxpayers pay their future tax liability.

The IRS does not accept all Offer in Compromises. The IRS will only accept an offer if they believe the debt is not collectible, the debt may cause a taxpayer unreasonable hardship or the amount of debt is potentially miscalculated.

The Internal Revenue Service is the government entity tasked with tax collection. The IRS is authorized to collect the tax dept by the federal government. Idaho taxpayers who fail to pay their tax debt can face aggressive debt collection tactics by the IRS including: wage garnishment, repossessions, and bank account levies. Offer in Compromise may be one method taxpayers have to avoid debt collection actions.

Offer in Compromise can be expensive and time consuming. The IRS will need large amounts of detailed financial data from the taxpayer to process the OIC. Penalties and interest will continue to accrue while the OIC offer is under consideration. A tax professional should be contacted by the Idaho taxpayer if they are considering an Offer in Compromise.

Qualifying for Offer in Compromise in Idaho

Approximately 25% of initial OIC offers are accepted. Not all Idaho taxpayers who want an OIC will qualify. To qualify for an OIC the Idaho taxpayer must meet one of the following conditions:

Doubt as to Liability – The IRS must believe there could be a miscalculation in the amount of debt the taxpayer owes. This can occur if the IRS made a mistake in assessing the tax liability or the taxpayer has more financial documentation that can clarify the amount of debt owed. The IRS does not use this condition very often.

Doubt as to Collectibility –  The IRS believes they will not be able to collect the tax debt either now or in the future. Under this condition the amount of tax debt owed is not in question, only the ability of the IRS to collect the debt.

Effective Tax Administration– If payment of the tax debt may cause “an inequitable or unfair hardship for the taxpayer” the Internal Revenue Service may be willing to accept an Offer in Compromise (most frequently used by the elderly and the disabled).

Rejection of Offer in Compromise in Idaho

Most Offer in Compromises are denied. The IRS has been granted the authority to deny or accept offers by the federal government and the Idaho taxpayer does not have legal recourse against the IRS. The IRS however, does frequently negotiate to give the taxpayer the ability to meet future tax obligations.

If the IRS denies the OIC, they must send written notification to the Idaho taxpayer outlining the reason for the rejection. If the IRS denied the Offer in Compromise because the offer was too low they should be able to provide a counter offer to the taxpayer which they would consider reasonable. If the IRS refuses to provide information the Idaho taxpayer has the legal authority to request it under the Freedom of Information Act.

Appealing an Offer in Compromise in Idaho

Negotiations for the Offer in Compromise can often start by contacting the IRS administrator who made the first OIC decision. If that does not work, a more formal appeal can be made by sending written notice to the IRS within 30 days from the date of the OIC denial.

Idaho taxpayers will need to resubmit their OIC forms only if the OIC deadline has expired or if their financial situation has dramatically changed.

Completing an Offer in Compromise

Idaho taxpayers will also need to complete the following tasks for an Offer in Compromise:

  • All Offer in Compromise forms must be completed and sent to the IRS.
  • Idaho taxpayers must submit their financial data to the IRS in a timely fashion. Financial information may include: Idaho taxpayer’s pay stubs, banking and car information.
  • Idaho taxpayers must complete and file tax returns on or before the tax deadline for the next five years.
  • All self-employed Idaho taxpayers must pay their tax estimates and file their tax returns every quarter.
  • All tax payments (except the amount outlined in the OIC) must be paid by Idaho taxpayers for the next five years.
  • Idaho taxpayers must pay the amount outlined in the Offer in Compromise.
  • All refunds will be applied to the Idaho taxpayer’s tax debt before the Offer in Compromise is accepted.
  • The Internal Revenue Service will apply any federal refund to the Idaho taxpayer’s tax debt for the calendar year that the Offer in Compromise is approved.

The IRS can reinstate the full tax amount and cancel the Offer in Compromise if taxpayers fail to follow all the OIC requirements.

Offer in Compromise Forms

  1. IRS Form 656- Offer in Compromise. IRS Form 656 provides financial information to the Internal Revenue Service detailing the taxpayer’s ability to pay their tax debt.
  2. IRS Form 443 A- Collection Information Statement for Wage Earners and Self-Employed Individuals. Form 443-A provides additional information to the Internal Revenue Service about the ability of the Idaho taxpayer to pay their debt.
  3. IRS Form 443-B- Collection Information Statement for Businesses. Form 433-B provides information to the IRS about the Idaho taxpayer’s business. This form will only need to be submitted if the business tax debt is included in the OIC agreement.
  4. IRS Form 656-A- Income Certification for Offer in Compromise Application Fee and Payment. This form must be submitted if the Idaho taxpayer is requesting an Offer in Compromise fee waiver.